According to the proposal, the two districts of the federation would be autonomous except for military, foreign affairs and security, which would be run by a central government in Amman.
Ultimately, King Hussein's proposal was ruled out after it had been rejected by Israel and the PLO, and other Arab states had strongly opposed the plan.
Its strong opposition was expressed in a statement issued by the PLO's executive committee, which met immediately after the plan was announced: The people of Palestine alone, and in the necessary atmosphere of freedom, can decide on their own future and the future of their cause.... And now the King is revealing himself and his collusion by announcing, though in different words, the birth of this "tiny entity," often bargaining with Israel that he should be a partner in it, in return for concessions in Jerusalem and in the Triangle as regards real sovereignty and, of course, for recognition and peace with Israel, and the creation of a bridge over which it could cross into all parts of the Arab homeland.
On the same day that Hussein's announcement was broadcast, the spokesman of the Israeli prime minister, Golda Meir, denied that Israel had any involvement with the plan and described it as "negating the cause of peace" and that it "creates obstacles on the road to its achievement."
The Israeli Defense Minister, Moshe Dayan, dismissed the announcement as "mere words, which do not open a pathway to any agreement or solution".